Texas enacted HB 4488 to prevent forced liquidation of its cryptocurrency holdings during budget processes.
Senate Bill 21 proposes allowing Texas to invest public funds in cryptocurrencies with over $500 billion market cap.
Institutional trends show increased Bitcoin exposure, with nearly half of hedge funds holding digital assets.
The state of Texas has passed a new law devised to protect its BTC and cryptocurrency holdings from liquidation. Governor Greg Abbott signed House Bill 4488 (HB 4488), securing the state’s digital asset reserves by providing they are not treated as traditional government funds. This legislative move standardizes the state's recognition of cryptocurrency as a separate financial category. The law prevents these digital holdings from being sold off involuntarily during fiscal planning periods or financial shifts.
HB 4488 Signed Into Law by Governor Abbott
The governor signed HB 4488, which came into force and entrenched the safety of cryptocurrencies held by the state. The law will make sure that the property is undisturbed until there is specific authorization to do so under certain conditions. Before, these funds were under a threat of forced liquidation by the state bodies or by budget-penetrating actions.
Authorities clarified that the legislature is supposed to protect the already existing crypto assets within the state. This step is consistent with the general trends in the sphere of public finance, as some states start to handle digital resources. While HB 4488 is now active, Senate Bill 21 (SB21) remains under consideration.
This bill proposes allowing Texas to directly invest in cryptocurrencies with a market capitalization of over $500 billion. As of now, Bitcoin is the only digital asset meeting this criterion. Governor Abbott has until June 22 to sign or veto SB21. If no action is taken, the bill will automatically become law. If passed, the bill will position Texas as one of the first U.S. states to invest public funds in Bitcoin officially.
Institutional Actions Reflect Similar Momentum
The developments in Texas follow an increasing number of institutional moves in the crypto sector. Eric Semler, chairman of Semler Scientific, recently increased his firm’s Bitcoin exposure. Semler has emphasized Bitcoin’s potential role as a long-term store of value as more accumulation is expected in the future, as per CryptoElites' post on X aligning with the Strategy adoption spree.
https://twitter.com/CryptooELITES/status/1936016931208970396
Recent data indicates that almost half of hedge funds now hold some form of cryptocurrency. These moves reflect the growing use of digital assets as part of institutional reserve strategies. If SB21 becomes law, Texas will hold the authority to invest public resources into qualifying digital assets.
Combined with HB 4488, these legislative steps show an administrative structure forming around crypto asset management. The state’s action may influence similar legislative proposals across other regions. As Texas awaits the final outcome of SB21, both bills represent measurable developments in how public institutions interact with cryptocurrencies. Final confirmation on SB21 is expected within days.
